Balchem Corp (NASDAQ:BCPC) Q4 2019 Earnings Conference Call - Final Transcript

Feb 21, 2020 • 11:00 am ET

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Balchem Corp (NASDAQ:BCPC) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings. Welcome to the Balchem Corporation Quarterly conference call for the fourth quarter 2019 financial results. At this time, all participants will be in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] Please note, this conference is being recorded.

At this time, I'll turn the conference over to Martin Bengtsson, Chief Financial Officer. Mr. Bengtsson, you may now begin.

Executive
Martin Bengtsson

Thank you, Rob. Good morning everyone and thank you for joining our conference call this morning to discuss the results of Balchem Corporation for the quarter ending December 31st, 2019.

My name is Martin Bengtsson, Chief Financial Officer and hosting this call with me is Ted Harris, our Chairman, CEO and President.

Following the advice of our counsel, auditors and the SEC, at this time I would like to read our forward-looking statements. This release does contain or likely will contain forward-looking statements, which reflect Balchem's expectation or beliefs concerning future events that involve risks and uncertainties. We can give no assurance that the expectations reflected in forward-looking statements will prove correct, and various factors could cause results to differ materially from our expectations, including risks and factors identified in Balchem's Form 10-K. Forward-looking statements are qualified in their entirety by this cautionary statement.

I will now turn the call over to Ted Harris, our Chairman, CEO and President.

Executive
Ted Harris

Thanks, Martin. Good morning and welcome to our conference call. Before I get into the quarter, I would like to reflect for a few minutes on some of the significant accomplishments that Balchem team achieved over the past year. 2019 was another strong year for Balchem. Financially, we delivered sales of $643.7 million with year-over-year sales growth in three of our four segments. Human Nutrition and Health, Animal Nutrition and Health and Specialty Products all delivered record sales performances in 2019. These sales drove record adjusted net earnings of $103.7 million compared to $97.8 million from the prior year, an increase of $5.9 million or 6.1% and record adjusted EBITDA of $160 million, an increase of $0.7 million or 0.5% from the prior year. And free cash flow remained strong at $96.1 million in 2019.

Strategically, we also had a good year. As a company we are striving to make the world a healthier place by providing innovative solutions for the health and nutritional needs of the world and at the same time operating with excellence as strong stewards of all our stakeholders. We are making progress on choline, mineral and amino acid nutritional understanding and awareness and our investments in new product development, external studies and new science development are making a difference for the future advancement of our human, animal and plant nutrition franchises.

Most notably, as a result of internal developments, we launched several new products to the market that are making a difference, including line of silica free chelated minerals and an improved compaction calcium citrate malate chelated mineral for human nutrition and health. We expanded our PetShure line of products for the